Page 5 - Banking Finance November 2024

BANK UPDATE

1 capital at its six major commercial
banks, along with a slew of other mea-
sures to shore up the real estate mar-
ket and the economy.
"Capital will be injected to different
banks in turns and with different poli-
cies," said Li Yunze, minister of the
Ò»©­ National Financial Regulatory Adminis-
tration, without giving more details.
The regulator will urge big banks to
enhance capital management capabili-
ties and strengthen operations to bet-
ter serve as a driving force for the real
economy, he said.

UPI lite wallet limit hiked to Rs. 5,000 Authorities announced a major stimu-
lus push to shore up growth. The plan
In order to encourage wider adoption of UPI payments, the Reserve Bank included a broad-based cut to existing
of India has decided to increase the UPI Lite wallet limit to Rs 5,000 and mortgage rates, adding to pressure on
per-transaction limit to Rs 1,000 from Rs 2,000 and Rs 500 respectively. UPI banks by lowering annual interest ex-
Lite functions without utilizing a remitter bank's core banking systems in real- penses by about 150 billion yuan ($21
time, while providing adequate risk mitigation. billion). Regulators also reduced how

Further, the RBI has also decided to enhance the per-transaction limit to Rs much banks need to hold in reserves
10,000 in the case of UPI123 Pay from Rs 5,000. This facility is now avail- and a cut to the key policy rate.
able in 12 languages.
Bandhan Bank launches
The RBI has proposed to introduce a 'beneficiary account name look-up fa-
cility' to enable remitters in RTGS and NEFT to verify the name of the ben- new maturity schemes
eficiary account holder before initiating funds transfer. Remitters can input Bandhan Bank has revised its deposit
the account number and the branch IFSC code of the beneficiary, following rate structure with the introduction of
which the name of the beneficiary will be displayed. This facility will increase two new maturity schemes.
customer confidence as it would reduce the possibility of wrong credits and
frauds. The private sector lender said it will
offer a 8.05% rate for one year fixed
deposits -- which is a new tenure intro-
Beijing to inject capital in to reserve requirements, aiming to sta- duced, while it has withdrawn the one
bilize the banking sector and support and-nine month scheme bearing 8%
big banks for first time in economic growth amid ongoing rate. Senior citizens will get 8.55% for
a decade challenges.(Reuters) the one year deposit, the bank an-
China is planning to recapitalize its big- China will inject capital into its largest nounced.
gest commercial lenders for the first banks to combat low profits and rising Effectively, the one-year deposit will
time in more than a decade, in a bid bad debt. This initiative includes mort- now carry the highest offer from the
to strengthen the industry battling gage rate reductions and adjustments bank.
with record low margins, sinking prof- to reserve requirements, aiming to sta-
Meanwhile, it has decided to offer 8%
its and rising bad debt. bilize the banking sector and support
on deposits with a maturity bucket of
economic growth amid ongoing chal-
China will inject capital into its largest one year one day to one year nine
banks to combat low profits and rising lenges. months. Earlier, one year to one year
bad debt. This initiative includes mort- At a rare press conference, authorities nine months deposits used to carry
gage rate reductions and adjustments flagged they will increase the core tier 7.25%.

BANKING FINANCE | NOVEMBER | 2024 | 5